Akamai Technologies Inc. (NASDAQ: AKAM), one of the beneficiaries of the ongoing digital transformation, has registered stable earnings and revenue growth this year. The stock recovered from a slowdown and made strong gains after the cybersecurity company reported stronger-than-expected third-quarter results last month.
The Cambridge, Massachusetts-based tech firm reported adjusted earnings of $1.45 per share for the September quarter, which is higher than last year’s profit of $1.31 per share and above analysts’ forecast. Unadjusted net income was $178.9 million or $1.08 per share, compared to $158.6 million or $0.95 per share in the third quarter of 2020.
At $860.3 million, revenues were up 9% year-over-year, reflecting a double-digit increase in Security Technology Group revenues. Analysts were looking for slower growth. During the quarter, the company repurchased around 0.8 million shares of its common stock for $97 million.
Read management/analysts’ comments on quarterly reports
“The unique breadth of our defenses is important to our customers who want more security capabilities from fewer vendors. Our security solutions are highly differentiated and recognized as best-in-class by our customers. who see us as a leading provider of services that protect their most critical assets, including enterprise websites, applications, data, and access. We routinely earn top rankings in multiple categories from major industry analysts,” said Akamai’s CEO Tom Leighton while talking to analysts.
Shares of Akamai have gained 7% since the beginning of 2021. The stock traded slightly lower during Monday’s pre-market session, after closing the previous session at $110.95.